EQT Signs 20-Year LNG Sale and Purchase Agreement with Commonwealth LNG

Rhea-AI Summary

EQT Corporation (NYSE: EQT) has entered into a significant 20-year LNG Sale and Purchase Agreement with Commonwealth LNG. The agreement secures 1.0 million tonnes per annum (MTPA) of liquefaction capacity at Commonwealth's Gulf Coast export facility near Cameron, Louisiana.

Under the agreement, EQT will purchase LNG on a free-on-board basis with pricing indexed to Henry Hub. This strategic move allows EQT to expand its domestic direct-to-customer strategy into global markets. The agreement will become effective upon satisfaction of customary conditions, including a final investment decision on the project.

Positive

• Secured significant 1.0 MTPA LNG export capacity for 20 years
• Expands EQT's global market presence and customer reach
• Strengthens EQT's position in the growing LNG market
• Provides flexibility to market and optimize cargo operations
• Leverages EQT's scale and balance sheet strength

Negative

• Agreement contingent on final investment decision
• Long-term 20-year commitment may limit flexibility
• Exposure to Henry Hub price fluctuations

Insights

Energy Industry Analyst

EQT secures 20-year LNG export capacity, strengthening global market position while diversifying revenue streams.

EQT's new 20-year agreement with Commonwealth LNG represents a strategic expansion of its international presence in the growing global LNG market. By securing 1.0 million tonnes per annum of liquefaction capacity, EQT is effectively extending its vertical integration from domestic production to global distribution.

The free-on-board pricing indexed to Henry Hub creates a transparent pricing mechanism while giving EQT complete control over cargo marketing and optimization internationally. This structure typically enables higher margin capture compared to purely domestic natural gas sales, as international LNG prices often command premiums over domestic rates.

This agreement builds upon EQT's existing LNG portfolio, creating what appears to be a deliberate diversification strategy. Multiple export arrangements provide operational flexibility and reduce counterparty risk, while the 20-year duration establishes long-term revenue visibility—assuming the project reaches final investment decision.

The strategic value lies in EQT's evolution from a pure-play Appalachian producer to an integrated global natural gas supplier. This positions the company to capture value across the entire natural gas value chain while accessing growing markets in Europe and Asia that are increasingly seeking reliable, lower-carbon energy alternatives.

Commonwealth's modular LNG design combined with EQT's production scale creates an efficient "wellhead-to-water" model that could provide competitive advantages in serving international markets. However, investors should note the agreement remains contingent on final investment decision for the Commonwealth LNG project, representing an important execution milestone before benefits materialize.

PITTSBURGH, Sept. 8, 2025 /PRNewswire/ -- EQT Corporation (NYSE: EQT) announced today that it has secured 1.0 million tonnes per annum (MTPA) of liquefaction capacity under a 20-year Sale and Purchase Agreement (SPA) with Commonwealth LNG at their export facility under development on the Gulf Coast near Cameron, Louisiana.

Under the terms of the agreement and consistent with EQT's existing LNG contracts, EQT will purchase LNG on a free-on-board basis at a price indexed to Henry Hub and market and optimize its cargos internationally. This additional export capacity enables EQT to further expand its domestic direct-to-customer strategy into the global energy markets.

"The signing of this agreement with Commonwealth LNG adds to the momentum we are building in the LNG market and further strengthens EQT's position as a leader connecting U.S. natural gas supply to growing global demand," said Toby Z. Rice, President and CEO of EQT. "With this latest agreement, EQT has established a diversified LNG export portfolio that will provide us with flexibility to market and optimize our own cargos. As global demand for reliable, lower-carbon energy continues to rise, we believe EQT's scale, balance sheet strength, and commitment to responsible development make us uniquely capable of delivering solutions that drive both economic growth and emissions reduction across international markets."

"The agreement with EQT is a strong endorsement of our integrated natural gas platform, featuring a unique wellhead-to-water strategy that meets burgeoning demand for LNG across global markets, while advancing U.S. energy leadership and economic growth," said Ben Dell, Managing Partner of Kimmeridge and Chairman of Caturus, the parent company of Commonwealth LNG. "By combining EQT's scale and Commonwealth's efficient modular LNG design, we're delivering a differentiated solution for global energy buyers."

The SPA will become fully effective upon the satisfaction of customary conditions, including an affirmative final investment decision on the project.

About EQT Corporation

EQT Corporation is a premier, vertically integrated American natural gas company with production and midstream operations focused in the Appalachian Basin. We are dedicated to responsibly developing our world-class asset base and being the operator of choice for our stakeholders. By leveraging a culture that prioritizes operational efficiency, technology and sustainability, we seek to continuously improve the way we produce environmentally responsible, reliable and low-cost energy. We have a longstanding commitment to the safety of our employees, contractors and communities and to the reduction of our overall environmental footprint. Our values are evident in the way we operate and in how we interact each day — trust, teamwork, heart and evolution are at the center of all we do.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Statements that do not relate strictly to historical or current facts are forward-looking. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the plans and expectations associated with EQT's SPA with Commonwealth LNG for natural gas liquefaction capacity from their export facility under development on the Gulf Coast near Cameron, Louisiana, including the proposed timing of in-service, the final scope, infrastructure, and available liquefaction capacity at such facility, and whether it will be completed at all – all of which could impact the volume of LNG EQT will receive as set forth in the SPA, if at all.

The forward-looking statements included in this press release involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. EQT has based these forward-looking statements on current expectations and assumptions about future events, taking into account all information currently known by EQT. While EQT considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond EQT's control. These risks and uncertainties include, but are not limited to, volatility of commodity prices; the costs and results of drilling and operations; uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future; the assumptions underlying production forecasts; the quality of technical data; EQT's ability to appropriately allocate capital and other resources among its strategic opportunities; access to and cost of capital; EQT's hedging and other financial contracts; inherent hazards and risks normally incidental to drilling for, producing, transporting, storing and processing natural gas, natural gas liquids and oil; operational risks and hazards incidental to the gathering, transmission and storage of natural gas as well as unforeseen interruptions; cyber security risks and acts of sabotage; availability and cost of drilling rigs, completion services, equipment, supplies, personnel, oilfield services and pipe, sand and water required to execute EQT's exploration and development plans, including as a result of inflationary pressures or tariffs; risks associated with operating primarily in the Appalachian Basin; the ability to obtain environmental and other permits and the timing thereof; construction, business, economic, competitive, regulatory, judicial, environmental, political and legal uncertainties related to the development and construction by EQT or its joint ventures of pipeline and storage facilities and transmission assets and the optimization of such assets; EQT's ability to renew or replace expiring gathering, transmission or storage contracts at favorable rates, on a long-term basis or at all; risks relating to EQT's joint venture arrangements; government regulation or action, including regulations pertaining to methane and other greenhouse gas emissions; negative public perception of the fossil fuels industry; increased consumer demand for alternatives to natural gas; environmental and weather risks, including the possible impacts of climate change; and disruptions to EQT's business due to recently completed or pending divestitures, acquisitions and other significant strategic transactions. These and other risks and uncertainties are described under the "Risk Factors" section and elsewhere in EQT's Annual Report on Form 10-K for the year ended December 31, 2024 and other documents EQT subsequently files from time to time with the Securities and Exchange Commission. In addition, EQT may be subject to currently unforeseen risks that may have a materially adverse impact on it.

Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, EQT does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

EQT Corporation Contacts

Investors

Cameron Horwitz
Managing Director, Investor Relations and Strategy
Cameron.Horwitz@eqt.com
412-445-8454

Media

Amy Rogers
Head of Strategic Communications
Amy.Rogers@eqt.com
410-703-6968

 

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SOURCE EQT Corporation

FAQ

What is the size and duration of EQT's LNG agreement with Commonwealth LNG?

EQT secured 1.0 million tonnes per annum (MTPA) of liquefaction capacity under a 20-year Sale and Purchase Agreement with Commonwealth LNG.

Where will Commonwealth LNG's export facility be located?

The export facility will be located on the Gulf Coast near Cameron, Louisiana.

How will EQT purchase LNG under this agreement?

EQT will purchase LNG on a free-on-board basis at a price indexed to Henry Hub, with the ability to market and optimize cargos internationally.

What conditions need to be met for the EQT-Commonwealth LNG agreement to become effective?

The agreement will become fully effective upon satisfaction of customary conditions, including an affirmative final investment decision on the project.

How does this agreement affect EQT's market position?

The agreement strengthens EQT's position as a leader in connecting U.S. natural gas supply to global demand and establishes a diversified LNG export portfolio for cargo optimization.